Ethereum Eyes $5K After Breaking Key $4,300 Resistance

Ethereum Price Eyes $5,300 After Breaking Key $4,300 Resistance

Ethereum price surged past the $4,300 mark, breaking multiple resistance levels and fueling bullish market sentiment. The cryptocurrency has climbed 20% over the past week, extending similar gains over the past month. According to markets analysts, ETH may break its all time high of $4,862 that was recorded in 2021 in the near future. A clear breakout above that can see the asset move into price discovery, aiming at reaching around $5,000 or above.

Why is Ethereum Price Up Today?

The recent rally has started this April and it saw a significant upside move which was characterized by the short corrections. At the beginning of August, the sellers tried to make sure that ETH stayed under $4,000. Their attempts proved futile and the level became a resounding backing to other corrections in the future.

A number of things are fueling the rally. Since July, whale wallets have been reported to have amassed more than $4.7 billion worth of ETH and dampened the liquid supply considerably. Technical advances prove a bullish breakout pattern, which is an addition to market confidence. Velocities with spot ETH ETFs have also spiked, with inflow of $537 million over four days as having almost equaled Bitcoin ETFs.

The cryptocurrency market in general is strong, as it has a total market capitalization of $3.99 trillion. The price of Bitcoin holds above the mark of $122,000, strengthening an overall bullish trend. In case of Ethereum, staying strong above fundamental support points will preset the scenario of a record-breaking movement.

Analyst Predicts Ethereum Price Surge Toward $5,300

Recent market analysis shows that Ethereum may be making a huge jump in the event of a high price above the $4,300 mark. According to MVRV Extreme Deviation Pricing bands data, a break above this level can result in a rally that will lead to $5,241.

The pricing system keeps records of market value and what is realized as far as Ethereum is concerned to determine critical levels. As analysts observe, this resistance located in the area of $4,300 coincides with an important zone of deviation, which in the past has been able to register a robust upward move upon overshooting.

Currently, the price of Ethereum is very near this resistance following recent upward trends. The cryptocurrency has been resurgent as it rises up gradually out of the current lows. According to market observers, the final breach over this threshold might welcome fresh upside pressure.

Will Ether Rally Above $4,500 This Week?

As of the reporting, the ETH price was trading at $4,187, showing a marginal gain of  3% in the last session. The cryptocurrency had already overcome the resistance at the price of $4,300 but failed to gain impetus, which made pullback.

The Relative Strength Index (RSI) had fallen out of the overbought area into the middle territory at around 60 after briefly testing higher than 73. The Chaikin Money Flow (CMF) was at a positive indication of 0.05, showing that the capital inflow is still present.

Source: Tradingview

Ethereum price has key resistance areas at $4,300, $4,500, and $4,800 although significant support was at $4,000. An extended rally on top of $4,300 would have been an initial step towards another rally bullish correction toward the higher resistances. Any dip below the level of $4,000 would have, however, indicated a further retracement.